Assignment
1. is intended to allow the use of sophisticated statistical and other analytical software to help an organization's members develop insights about customers, processes and markets.
a. data mining
b. data entry
c. e-commerce module
d. market segmentation
2. Issues related to the purchasing function, such as kickbacks, bribes, conflicts of interest, and the like are often addressed by .
a. job descriptions
b. corporate codes of conduct
c. computer security modules
d. vendor master files
3. In a fraud scheme known as , the perpetrator attempts to cover the theft of cash received from customer A by applying cash collected from customer B to A's account, then applying a receipt from C to B's account, and so forth.
a. Kiting
b. Lapping
c. Schmoozing
d. Hacking
4. Which of the following statements is true?
a. In a prebilling system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.
b. In a postbilling system, invoices are prepared upon acceptance of the customer order, and there is no separate sales order document as such.
c. Of the two types of billing systems discussed in the text, the prebilling system requires the more accurate inventory records.
d. Of the two types of billing systems discussed in the text, the prebilling system is appropriate in situations where there is a significant delay between acceptance of the customer's order and its shipment.
5. Which of the following managers is most likely to report to the controller?
a. accounts payable department manager
b. cashier
c. purchasing department manager
d. receiving department manager
6. The control plan computer generated list of vouchers due, is directed primarily at which of the following control goals?
a. Select a vendor who will provide the best quality at the lowest price by the promised delivery date.
b. Input validity.
c. Input accuracy.
d. Input completeness.
7. A remittance advice generally would be recorded in which of the following pairs of data stores?
a. customer master data and accounts receivable master data
b. sales event data and accounts receivable master data
c. accounts receivable adjustments data and accounts receivable master data
d. cash receipts data and accounts receivable master data
8. In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the:
a. bill of lading
b. sales order
c. customer acknowledgment
d. none of the above
9. Before a shipping notice is prepared by shipping personnel, they should match the details of which of the following pairs of data flows?
a. The picking ticket and a copy of the sales order earlier sent to shipping from the order entry department.
b. The completed picking ticket and a copy of the sales order earlier sent to shipping from the order entry department.
c. A copy of the sales order earlier sent to shipping from the order entry department and the bill of lading.
d. The completed picking ticket and the bill of lading.
10. To help ensure input validity and security of cash, the computerized AP process performs:
a. Independent validation of vendor invoices
b. Mathematical accuracy check of vendor invoices
c. Independent authorization to make payment
d. Reconcile input and output batch totals
11. In the cash receipts process, the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:
a. assuring the timely deposit of cash receipts
b. ensuring security of the cash asset
c. ensuring cash receipts input accuracy
d. ensuring cash receipts input completeness
12. For the cash receipts process, the control plan "receive turnaround documents" helps to achieve which of the following pairs of information process control goals?
a. input validity and input completeness
b. input validity and input accuracy
c. input accuracy and input completeness
d. input accuracy and update accuracy
13. A "blind" copy of the purchase order should be sent to receiving so that:
a. receiving can anticipate the receipt of the goods from the vendor
b. receiving clerks will know the value of what is on order
c. partial shipments can be monitored
d. receiving clerks will be forced to actually count the goods that are received
14. Segregation of duties is most clearly accomplished in most organizations by separating:
a. billing and accounts receivable
b. treasury and controllership
c. sales and accounts receivable
d. order entry and cash receipts
15. In an accounts payable/cash disbursements process, a process--establish payable--normally would be triggered by:
a. vendor invoice
b. a purchase order
c. a copy of the purchase order sent to the inventory process
d. a vendor acknowledgment
16. The purchasing process--receive goods and services--normally would be triggered by the data flow:
a. purchase order
b. vendor acknowledgment
c. vendor packing slip
d. purchase requisition
17. Which of the following would normally trigger a post-billing process in the B/AR/CR process?
a. A copy of the sales order
b. A shipping notice
c. A picking ticket
d. A customer acknowledgement
18. Which of the following is not the purpose of internal controls?
A) Compliance with laws and regulations
B) Effectiveness and efficiency of operations
C) Public examine of private data
D) Reliability of financial reporting
19. Which COSO Internal Control-Integrated Framework essential component of an effective internal control system involves identifying, analyzing, and managing risks that affect a company's ability to record, process, summarize, and report financial data properly?
A) Risk Assessment
B) Control Environment
C) Control Activities
D) Monitoring
20. In the COSO Internal Control-Integrated Framework, control activities do not include
A) Independent reconciliations of assets and accounting records
B) Physical controls
C) Segregation of duties
D) Management controls
21. Which COSO Internal Control-Integrated Framework essential component of an effective internal control system includes the accounting system for identifying, recording, processing, and reporting transactions and financial data?
A) Monitoring
B) Information and Communication
C) Control Activities
D) Control Environment
22. In the COBIT framework, which IT resource category consists of manual and programmed procedures to process information?
A) Infrastructure
B) Applications
C) People
D) Information
23. Which IT process domain, as defined by COBIT, relates to IT strategy and tactics to contribute to attaining business goals?
A) Plan and Organize (PO) Domain
B) Deliver and Support (DS) Domain
C) Acquire and Implement (AI) Domain
D) Monitor and Evaluate (ME) Domain
24. Which IT process domain, as defined by COBIT, encompasses IT operations, security, and training?
A) Plan and Organize (PO) Domain
B) Deliver and Support (DS) Domain
C) Acquire and Implement (AI) Domain
D) Monitor and Evaluate (ME) Domain
25. Which of the following is not part of the information criteria as defined by COBIT?
A) Integrity
B) Scalability
C) Availability
D) Confidentiality
26. Which general IT control includes control over SDLC phases for software upgrades and modifications?
A) Program development controls
B) Access security controls
C) Computer operations controls
D) Program change controls
27. Which general IT control covers acquisition, implementation, and maintenance of system software including the operating system, DBMS, network software, and security software?
A) Access security controls
B) Computer operations controls
C) Program change controls
D) Program development controls
28. The IT control associated with business processes is
A) Entity-level controls
B) IT general controls
C) Application controls
D) Event controls
29. Which ERM category relates to the effective and efficient use of a corporation's resources?
A) Operational objective
B) Compliance objective
C) Strategic objective
D) Reporting objective
30. Which ERM category relates to the goals that support a corporation's mission?
A) Reporting objective
B) Operational objective
C) Strategic objective
D) Compliance objective
31. Which ERM component involves the risk management philosophy of the enterprise, including the tone set by top management?
A) Control activities
B) Information and communication
C) Internal environment
D) Event identification Fill in the blanks:
32. This risk response involves or exiting the activities that give rise to the risk.
33. An entity reduces risk likelihood or risk impact by the risk with another entity.
34. This risk response refers to actions taken to risk likelihood, risk impact, or both.
35. When an entity responds to risk with , the entity takes no action to affect risk likelihood or risk impact.
36. Which of the following is not considered a control activity?
A) Locked door
B) Performance reviews
C) Event identification
D) Segregation of duties.